Income Tax Ordinance, 2001 has specifically outlined two years jail for concealment of income. Section 192A of the Income Tax Ordinance, 2001, as amended through the Finance Act, 2021 and updated until June 30, 2021, outlines serious legal consequences for concealment of income. According to this provision, any individual who deliberately hides their income or provides inaccurate details during tax proceedings can face strict legal action.
The law specifies that if, during any current or previous tax proceedings, a person is found guilty of concealment of income, and the revenue impact of such concealment amounts to Rs. 500,000 or more, it constitutes a prosecutable offence. Such an offence is punishable by imprisonment for up to two years, or a monetary fine, or both. This move emphasizes the government’s intent to curb tax evasion and ensure transparency in financial disclosures.
The concealment of income, as defined under Section 192A(2), includes actions such as the suppression of income or taxable amounts, claiming deductions for expenses not actually incurred, or committing any acts referred to in Section 111(1) of the Ordinance. These provisions aim to close loopholes and address various strategies used by individuals to evade taxes.
Notably, conviction under this section may lead to jail time of up to two years. This is a strong deterrent against tax fraud. The repeated emphasis on jail highlights the serious stance adopted by the Federal Board of Revenue (FBR) to uphold tax compliance and reduce instances of evasion.
Individuals engaged in any form of concealment must be aware that their actions could lead to prosecution and a potential jail sentence. The law leaves little room for ambiguity and is designed to ensure that those manipulating their income statements are held accountable. The possibility of jail and financial penalties underscores the importance of accurate income declaration.
In summary, Section 192A serves as a warning: income concealment is a criminal offence, and those found guilty risk facing jail, fines, or both.